Crawford & Company · NYSE:CRD.A
Crawford & — SunTrust Robinson Humphrey Unconference 2009
37 slides from Crawford &'s conference presentation, May 20, 2009
Slide 1: SunTrust Robinson Humphrey Unconference
Exhibit 99.1 SunTrust Robinson Humphrey Unconference May 20, 2009
Slide 2: Forward-looking Statements, Segment Operating Earnings and Non-GAAP Financial Information
Forward-looking Statements, Segment Operating Earnings and Non-GAAP Financial Information Forward LookingStatements: This presentation contains forward-looking statements, including statements about the future financial condition, results of operations and earnings outlook of Crawford & Company. Sta
Slide 3: Our Market Leading Global Businesses
Our Market Leading Global Businesses • World’s largest fully-integrated independent provider of global claims management solutions. • Four reporting segments: – International Operations • Serves the global insurance industry and multi-national corporations – U.S. Property & Casualty • Serves the U.S
Slide 4: Positioned for a Global Economy
Positioned for a Global Economy More than 700 locations in 63 countries 4
Slide 5: Agenda
Agenda • Crawford Strategic Objectives • Financial Results • Segment Overview • Summary “We intend to continue to build upon our operational improvements as we move through 2009.” - Jeffrey T. Bowman, President & CEO 5
Slide 6: Working Together: the Crawford Difference
WORKING TOGETHER: the Crawford Difference The Crawford Difference lives in our: • Expansive global footprint • Innovative technological solutions • Fresh approach to our service delivery model • Employee expertise, and • Razor-sharp focus on consistently delivering industry-leading results to our cl
Slide 7: Strategic Goals: 2009 - 2011
Strategic Goals: 2009 - 2011 • Leverage and grow Crawford & Company’s position as the world’s largest independent provider of claims solutions. • Further improve working capital management. • Implement innovative, value-added solutions that drive quality and results. • Become a premier employer. 7
Slide 8: The Crawford System of Claims Solutions
SM The Crawford System of Claims Solutions The System is the most comprehensive global, integrated solution for all corporate, insurer, and re-insurer claims administration. 8
Slide 9: Strategic Objectives
Strategic Objectives • Execute global launch of The Crawford System of Claims SolutionsSM to dramatize our competitive advantages, reinforce our industry leadership, and clarify our portfolio of businesses. • Expand Key Account Management to improve sales and marketing initiatives to win more busine
Slide 10: Strategic Objectives, cont'd
Strategic Objectives, cont’d • Implement Information and Communications Technology strategies to leverage technology gains to maximize operating efficiencies and improve data management. • Continue successful rollout of RiskTech within Broadspire • Remain a target-driven organization that meets it p
Slide 11: Financial Review
Financial Review
Slide 12: Diversified Business and Clients
Diversified Business and Clients Fiscal 2008 Revenues of $1.05 Billion • No single client over 6% of total revenue • Top 20 Clients represent 34.7% of total revenue • Top 50 Clients represent 48.5% of total revenue Broadspire • Workers’ Compensation and International Liability Claims Administration
Slide 13: Fiscal 2008 Financials
Fiscal 2008 Financials CONDENSED CONSOLIDATED STATEMENTS OF INCOME* Unaudited (In Thousands, Except Earnings Per Share and Percentages) Year Ended December 31 2008 2007 % Change Revenues: Revenues Before Reimbursements $1,048,582 $975,143 8% Reimbursements 87,334 76,135 15% Total Revenues 1,135,916
Slide 14: Fiscal 2008 Financials
Fiscal 2008 Financials Crawford & Company Balance Sheet Highlights* As of December 31, 2008 and December 31, 2007 in thousands, except percentages December 31, December 31, 2008 2007 Change Cash and cash equivalents $73,124 $50,855 $22,269 Accounts receivable, net 157,430 178,528 (21,098) Work in pr
Slide 15: Fiscal 2008 Financials
Fiscal 2008 Financials Crawford & Company Free Cash Flow (non-GAAP) For the years ended December 31, 2008 and 2007 In Thousands 2008 2007 Variance Net Income $32,259 $16,116 $16,143 Plus: Depreciation / Non-Cash Items 38,923 31,692 7,231 Less: Special Credits (2,512) (8,824) 6,312 Less: Working Capi
Slide 16: First Quarter 2009 Financials
First Quarter 2009 Financials CRAWFORD & COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited (In Thousands, Except Earnings Per Share Amounts and Percentages) Quarter Ended March 31 2009 2008 % Change Revenues: Revenues Before Reimbursements $236,083 $255,512 -8% Reimbursements 14,200 19,1
Slide 17: Revenue and Earnings Per Share Bridge 1st Quarter 2008 to 09
Revenue and Earnings Per Share Bridge 1st Quarter 2008 to 2009 Net Income attributable Revenues before to Crawford Diluted In millions, except per share amounts Reimbursements & Company EPS st 1 quarter 2008 results $255.5 $9.1 $0.18 (Less)/Add: Foreign currency impact in 2009 (23.4) (1.4) (0.03) In
Slide 18: Operating Segments
Operating Segments
Slide 19: First Quarter 2009 Financials
First Quarter 2009 Financials $ in millions 110 Summary Results, International Operations For the quarters ended March 31, 2009 and 2008 100 in thousands except percentages 90 Unaudited $106.7 2009 2008 % Change 80 $90.9 70 Revenues $ 90,872 $ 106,710 -14.8% 60 Total Operating Expenses 83,407 97,723
Slide 20: International (excluding U.S.) Property & Casualty Insurance Market Opportunities
International (excluding U.S.) Property & Casualty Insurance Market Opportunities • Only 4.4% of dollars spent by rest of world (ROW) carriers on claims are outsourced to third party independent adjusters. • Very few global claims providers – Crawford is the largest • As ROW insurance carriers look
Slide 21: First Quarter 2009 Financials
First Quarter 2009 Financials $ in millions Summary Results, U.S. Property & Casualty 60 For the quarters ended March 31, 2009 and 2008 50 in thousands except percentages 40 $55.1 Unaudited $49.5 30 2009 2008 % Change 20 Revenues $ 55,052 $ 49,510 11.2% 10 0 Total Operating Expenses 48,882 43,561 12
Slide 22: U.S. Insurance Market
U.S. Insurance Market • Approximately 14% of dollars spent by U.S. carriers on claims services are outsourced to third parties – High propensity to outsource non-core lines and/or non-core states • Outsourced claims service provider market is highly fragmented – Crawford is the market leader with ap
Slide 23: U.S. Property & Casualty Growth Opportunities
U.S. Property & Casualty Growth Opportunities • Strategic Growth – Target large insurers who are consolidating their vendor lists and strive to ensure Crawford is named an approved vendor • Continuous quality improvement • Efforts toward training and product development – Target markets • Small and
Slide 24: First Quarter 2009 Financials
First Quarter 2009 Financials $ in millions Summary Results, Broadspire 90 For the quarters ended March 31, 2009 and 2008 80 in thousands except percentages 70 Unaudited $80.3 $74.6 2009 2008 % Change 60 50 Revenues $ 74,601 $ 80,313 -7.1% 40 1Q 2009 1Q 2008 Total Operating Expenses 76,555 78,566 -2
Slide 25: Broadspire Positioning
Broadspire Positioning Third Largest TPA in Workers’ Compensation/Liability Market Products and Services: Workers’ Compensation Claims Services Auto and General Liability Claims Services Medical and Disability Management Services Long-Term Care Services Risk Management Information Systems (Risk Scie
Slide 26: U.S. TPA Market Opportunities
U.S. TPA Market Opportunities • Self-insured entities and captives outsource practically all of their claims services • Outsourced total claims management is fragmented • Local and regional providers unable to leverage technology investment Unallocated Loss Adjusting Expenses Outsourced Loss Adjusti
Slide 27: First Quarter 2009 Financials
First Quarter 2009 Financials $ in millions Summary Results, Legal Settlement Administration 20.0 For the quarters ended March 31, 2009 and 2008 18.0 in thousands except percentages $19.0 16.0 Unaudited 14.0 2009 2008 % Change $15.6 12.0 Revenues $ 15,558 $ 18,979 -18.0% 10.0 1Q 2009 1Q 2008 Total O
Slide 28: Products and Services
Products and Services • The Garden City Group, Inc. (GCG) provides these core services: – GCG Class Action Services provides technology-intensive administrative services for plaintiff and defense counsel and corporate defendants to expedite high-volume class action settlements. • GCG Class Action Se
Slide 29: Securities Class Action Cases
Securities Class Action Cases 35 30 33 25 26 20 15 10 11 5 4 4 4 0 AB Data, Berdon Complete Heffler Gilardi and Garden Ltd. LLP Claims Radetich & Co., LLC City Group Solutions, LLC Saitra LLP Source: RiskMetrics Group (SCAS Top 100 since 1995, September 30, 2008) GCG has handled one-third of the lar
Slide 30: Summary
Summary
Slide 31: Crawford is "Positioned for Growth"
Crawford is “Positioned for Growth” • Access to growing global markets • Increasing market share both domestic and internationally • Crawford expects to benefit from global consolidation of TPA vendors • Diverse customer base • High customer retention rates • Emphasis on quality and value provided s
Slide 32: Execution Strategy
Execution Strategy • Relentless dedication to outstanding execution • Each strategic action and intention translated into monthly, measurable, objectives and outcomes • Systematic tracking of interim milestones better enables leadership control and proactive decision making • Reinforce accountabilit
Slide 33: 2009 Guidance
2009 Guidance • Reaffirming Full Year 2009 Guidance: – Consolidated revenue before reimbursements between $960 million and $980 million – Consolidated operating earnings between $50.5 million and $55.8 million – After reflecting stock-based compensation expense, net corporate interest expense, custo
Slide 34: Working Together: the Crawford Difference
WORKING TOGETHER: the Crawford Difference “Crawford & Company will be known as a target driven corporation that meets its promises to clients and shareholders.” Jeffrey T. Bowman President and CEO 34
Slide 35: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Reimbursements for Out-of-Pocket Expenses In the normal course of our business, we sometimes pay for certain out-of-pocket expenses that are reimbursed by our clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are reported as reve
Slide 36: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Crawford and Company (in $000's) March 31, December 31, December 31, 2009 2008 2007 Deferred Revenues, Net Deferred revenues, current $ 57,280 $ 59,679 $ 64,363 Deferred revenues, noncurrent 39,758 42,795 58,925 Total deferred revenues 97,038 102,474 123,288
Slide 37: SunTrust Robinson Humphrey Unconference
SunTrust Robinson Humphrey Unconference May 20, 2009
Crawford & — SunTrust Robinson Humphrey Unconference 2009 on 6ix